I am not a realtor, or a roofing contractor -- But I do have some ideas
here.

It is not uncommon for 'for sale' homes to have roofing problems.
However, if the roof is bad this is a possible indication that other
maintenance issues may have gone neglected -- It makes me wonder if
other potentially serious maintenance issues are lurking.

I also suspect that any mortgage company worth their salt would insist
that the roof be brought up to good condition before they fund a loan.
Standards may vary but if the roof is leaking now, and it is known and
disclosed by the seller, this is a big red flag to the lender.

If after a careful home inspection you are still interested in the
house, I would insist that the seller fix the roof as a condition of
escrow, with a guarantee on the roof comparable to what you would get if
you hired a roofing contractor yourself. To reiterate: To avoid problems
I would not allow escrow to close until the roof work was complete and
signed off by you (with the aid of a good home inspector.) Make Sure
that the proper permits and inspections have happened before you sign
off, and that work was performed by a licensed contractor.

You will need to specify the repairs to be made in detail in your
contract with the seller. This will help to avoid problems like the
current owner doing a sub standard job on the roof, or refusing to do it
at all, leaving your funds tied up in an escrow that will 'blow up' and
delay your ability to enter into an escrow on a different house. If the
seller refuses, forget about the house and move on.

Make sure that the sale contract specifies enough detail that if a
roofing related problem arises after work is started, or within some
finite time (years?) after the work is completed, the seller (or roofer)
is clearly responsible for paying for repairs to a specified standard.

Here in California older homes often have termite or other sub roofing
issues that are not obvious. This can be aggravated by water damage. A
roofer often does not know the full cost of the job until they do the
demolition work and reveal what is under the existing roof. Roofing
costs often go up beyond the initial estimate for these reasons, even
when dealing with an honest roofing company. You may also end up having
a big rainstorm in the middle of the job, leaving you in a bad
situation. Do you really want to accept this risk or do you want to keep
this risk where I believe it belongs -- with the seller?

You may be able to negotiate a discount on the house, but unless you get
several estimates on the roofing job, AND build in a contingency for
'extras' that might be discovered once work is begun, you are taking a risk.

Another item to consider: Will you have enough cash on hand after escrow
closes, even if you get a discount, to pay for the roof repairs if the
seller does not pay for the repairs out of the escrow? If not, you may
be tempted to put off the repairs and this is a big no-no.


brotherjohn wrote:

After several months of not finding a house that I want, I find one
that is for sale by owner. I have never bought a house under these
circumstances and wondered what suggestions OP's on this list might
have on how to proceed here.



What is the first step?

I noted right off that the house is (IMO) $3,000 over what most houses
in the area are selling for plus the roof is in need of replacement.
The seller was open on the issue of the roof, so I feel they are
expecting the negotiation on that point, but should a roofer be
consulted on replacement cost?

Should I get an appraisal and/or home inspection and let that speak on
the matter of the roof and whatever else may be an issue in price or
should I go ahead and approach the seller on price.

What role does the bank play? Do they require an appraisal?

At what point should I get an attorney involved?

Thanks for any help.